Prime Minister Ilie Bolojan on Sunday evening said that the draft law on private pensions, currently under public debate, does not provide for the confiscation of funds accumulated by citizens, but merely regulates the method of payment, following the model applied in most European countries.

Ilie Bolojan explained that the draft was prepared by the Financial Supervisory Authority (ASF), was subject to transparency procedures at the Ministry of Labour, which endorsed it, and is currently under public consultation.

The prime minister stressed that the draft stipulates that beneficiaries of private pension funds will be able to withdraw 25% of the amount upon retirement, while the remainder will be distributed in instalments over a ten-year period, taking into account the average life expectancy in Romania.

Bolojan added that Romania must adopt this legislation in order to meet the necessary milestones for joining the Organisation for Economic Co-operation and Development (OECD) and mentioned that further debates on the topic would take place in the coming days.

„There will also be two debates next week on this issue. Following these discussions, I hope things will be clarified – meaning that the Government is not confiscating or using any funds. What this draft proposes is that, just as the money is collected gradually and is intended to supplement the pension provided by the state, once you reach retirement, you would indeed be able to withdraw 25% – this is the average provision in all EU countries – and the remaining amount can be disbursed monthly, or you can plan to receive the full amount in instalments,” Ilie Bolojan said on Antena 3 CNN.

He also mentioned that the Government will not assume responsibility for this draft law, but will instead submit it to Parliament.

AGERPRES